2013 annual report - banca march...publication alternative investment review (iair). with regard to...

1principales áreas | banca cOMERcIaL Y PRIVaDa

2013 ANNUAL REPORT

2 2013 ANNUAL REPORT

Detail from the front of Palma de Mallorca City Hall

3Table of conTenTs

03Shares in Corporación Financiera Alba ................................55Share portfolio .....................................................................56

Affiliated companies

Listed ......................................................................................57

ACS .............................................................................57

Acerinox ....................................................................58

Indra ...........................................................................58

Ebro Foods ..............................................................59

Clínica Baviera ........................................................59

Antevenio ................................................................ 60

Unlisted ....................................................................................61

Mecalux ......................................................................61

Pepe Jeans ................................................................61

Panasa .......................................................................62

Ros Roca ...................................................................62

Flex..............................................................................62

Ocibar ........................................................................63

Encampus ................................................................63

Letter from the Chairman .................................................. 4

Board of Directors ................................................................ 8

Executive committee .......................................................... 8

Audit committee ................................................................... 9

Remuneration and appointments committee ........... 9

Management committee ................................................... 9

The economy in 2013 .........................................................10

2014 prospects:

confirmation of global recovery ....................................16

01Economic and Financial Report ............................ 19 Most significant data ........................................................ 20

Banca March Group ...........................................................22

Analysis of the consolidated balance sheet .............28

Client funds .......................................................................... 30

Customer credit ...................................................................32

Capital markets ....................................................................33

Capital instruments ............................................................34

Consolidated income statement ..................................36

02Principal areas of bank business ..........................39 Wealth Management ........................................................ 40

Retail and Private Banking ..............................................42

Corporate Banking ............................................................ 46

Subsidiaries ...........................................................................49

March Gestión .........................................................49

March JLT ................................................................ 50

March Vida ................................................................51

360 Corporate ........................................................52

Consulnor .................................................................53

Table of contents


After some convulsive years 2013 saw a change in the trend of the international economy from the middle of last year which we hope will be consolidated in 2014 with continued improvement in macroeconomic data, especially in Spain. The disastrous first quarter of 2012 (probably the worst period of the economic and financial crisis and which jeopardized the very continuity of the single currency) has been overcome. The Eurogroup agreement of July 2012 for bank rescue in Spain and the firm public commitment of the European Central Bank to support the Euro made it possible to eliminate much of the uncertainty. This had a particularly positive impact in Spain, both in the equities market and, above all, on the risk premium of its sovereign debt which resulted in investments returning to the capital markets.

We are not out of the woods yet, however. Despite the improvement in expectations, Spanish economic data in 2013 was generally not positive: Real GDP fell by 1.2%, the unemployment rate rose to 26.4% of the active population and the public deficit remained at a high of 6.6% of GDP. Nevertheless, some clearly positive data began to materialize such as the attainment of

an external surplus from an increase in exports which was largely as a result of competitive gains after the reforms in recent years. Clearly, 2013 was a year of stabilization of the economy, and possibly the start of an incipient recovery.

In spite of the fact that the economic forecasts of various international bodies for Spain in 2014 and subsequent years have improved in recent months, expected growth rates are still moderate so it is important to continue deepening the reforms initiated. In particular, this means reducing the public deficit and the public debt to GDP ratio. The major pending reform at the moment in Spain relates to the structure and current expenditure of the public sector. In view of the increase in public debt, which practically doubled between 2008 and 2013, the great effort made in recent years by companies and households to reduce indebtedness from the highs of 2008 and 2009 should be emphasized. Despite this, this debt is still high and as a result does not favour a consumer and investment recovery that will lead to economic growth.

The first months of 2014 have produced a positive change, with a gradual

Letter from the Chairman

Royal Palace. Madrid

5leTTer from The chaIrman

improvement in credit thanks to greater liquidity and the better overall situation of financial institutions.

Banca March, for its part, has continued displaying the prudence and commitment that has always been our hallmark. We have continued maintaining limited debt levels, a prudent and diversified credit policy and have only sold products our customers find suitable. We completely confirm our commitment to jointly invest with them, which is one of the elements in the philosophy of our bank that differentiates us.

This management model has meant that we have an outstanding solvency ratio, a bad debt ratio that is much lower than average (less than half), a high liquidity ratio and one of the most debt-free balance sheets in the Spanish financial system.

Moody’s has given Bank March a Baa3 rating for short and long-term term debt, consolidating our company as having one of the best credit ratings.

We are reasonably satisfied by the behaviour shown by the bank’s strategic areas and the development

of our business model. Our client base has grown by over 22% in wealth management and private banking, with a trading volume that has increased by 23% compared to 2012.

March Gestión closed 2013 with 80% more in managed assets, a particularly notable figure if the general activity in the sector is taken into account. Over the last five years our management company has trebled its assets through its investment funds, and Banca March has a leading position as a SICAV manager, occupying the third place just behind the two big national banks in funds managed by these institutions.

Also relevant was the step taken in November 2013 in converting ourselves into the sole shareholder of Banco Inversis - a strategic provider of services to Banca March in the context of the securities market - after acquiring the stake of the remaining shareholders by which Banca March has ensured that it maintained the service quality it provides its clients as well as developed its institutional business both in Spain and expanded internationally.

In coming years, our objective is to be leaders and to become a reference


Canal de Isabel II. Madrid

7leTTer from The chaIrman

in strategic sectors. To do this, we have proposed to double the Private Banking trading volume (increasing client numbers by 70%) and to have a bigger footprint in the corporate advisory business, offering our clients a whole range of high value-added products in areas such as non-banking finance, M&A, equity risk cover etc. in addition to traditional services. Our subsidiaries March JLT and 360 CORPORATE are oriented to this goal.

We are also satisfied with the new international recognition obtained by the bank. We were named the Best Private Bank in Spain 2013 by the British journal World Finance for the fourth consecutive year; Best Spanish Asset and Wealth Management Company in 2013 by Global Banking & Finance International and Best European and Private Bank in 2013 by the international publication Alternative Investment Review (IAIR).

With regard to the Corporación Financiera Alba (the investment arm of our group), its 2013 consolidated net profit shows an after-tax profit of €226.9 million compared to the losses of the previous year when the ACS shares in Iberdrola were written down. For 2014, Corporación Financiera Alba will maintain reasonably positive forecasts. All the affiliated companies have

increased the efficiency of their operations and maintain moderate debt levels, with greater diversification of their sources of finance which positions them adequately to take advantage of opportunities in an environment of economic recovery. And all of them have achieved a large degree of internationalization in recent years. Hence in 2013, 85.4% of aggregated consolidated sales of our listed affiliates was generated outside Spain, compared to 51.1% just three years ago. We consider that these international activities will continue gaining ground in all these companies in coming years.

Finally, I wish to express my thanks to the members of the Banca March team, in the conviction that with their work and dedication we shall continue to consolidate our business model.

Carlos March Delgado Chairman


Board of Directors*

Chairman:carlos march Delgado (proprietary)

1st Deputy Chairman:Pablo Vallbona Vadell (external)

2nd Deputy Chairman:Juan march de la lastra (proprietary)

CEO:José nieto de la cierva (executive)

Directors:Juan march Delgado (proprietary)

Juan march Juan (proprietary)

Juan carlos Villalonga march (proprietary)

Javier Vilardell march (proprietary)

albert esteve cruellas (independent)

santos martínez-conde Gutiérrez-barquín (executive)

antonio matas segura (external)

Ignacio muñoz Pidal (independent)

luis Javier rodríguez García (independent)

fernando abril-martorell hernández (independent)

Jorge bergareche busquets (executive)

moisés Israel abecasis (independent)

Company secretary:José Ignacio benjumea alarcón (executive)

Executivecommittee*

Chairman:Juan march de la lastra

Members:Pablo Vallbona Vadell Juan march Juan José nieto de la cierva santos martínez-conde Gutiérrez-barquín Ignacio muñoz Pidal luis Javier rodríguez García

Secretary:José Ignacio benjumea alarcón

Window of a house in Calle Morey. Mallorca

*At April 30, 2014

9sTrUcTUre of boarD anD commITTees

Auditcommittee*

Riskcommission*

Management committee*

Remunerationand Appointmentscommittee*

Chairman: Ignacio muñoz Pidal

Vice-chairman: antonio matas segura

Members: José Ignacio benjumea alarcón luis Javier rodríguez García

Secretary: Jaime fuster Pericás

Chairman: Juan march de la lastra

Members:Pablo Vallbona Vadell santos martínez-conde Gutiérrez-barquín Ignacio muñoz Pidal

Secretary: José Ignacio benjumea alarcón

Chairman: Juan march de la lastra

Members: Pablo Vallbona Vadell santos martínez-conde Gutiérrez-barquín Ignacio muñoz Pidal

Secretary: José Ignacio benjumea alarcón

Managing Director: José nieto de la cierva

José luis acea rodríguez (Retail and Private Banking)

hugo aramburu lópez- aranguren (Wealth Management)

alberto del cid Picado (Chief Financial Officer)

miguel crespo del Valle (Corporate Banking)

mercedes Grau monjo(Catalonia and Private Banking)

maría luisa lombardero barceló(Strategic Planning)

rita rodríguez arrojo(Human Resources)


The economy in 2013. Rebalancing of global growth but at a slower pace than the historical average.

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World Developed Emerging US Eurozone Spain

Rise in GDP. Leading economies.

Source: IMF and Banca March2012 2013 2014 p

The global economy continued decelerating in 2013 and growth moderated slightly compared to the previous year to 3%. However, it should be emphasized that from the middle of the year activity accelerated, driven by the developed economies with improvement in growth in the United States and Japan, as well as the end of the recession in the Eurozone. For its part, growth in emerging economies slowed in the face of an increase in financial tensions and less dynamism in internal demand. In this context, the global economy grew at a slower pace than the average over the last two decades, but divergences between the main regions were reduced.

The slower global pace of growth, together with continued high unemployment rates and restriction in access to credit, kept inflation down and average growth in global CPI was 2.9%, three-tenths below that in 2012. In the US, the CPI grew by 1.5% year-on-year, a similar rate to the Eurozone (1.4%). A contrary trend occurred with inflation in Japan, which rose three-tenths of a percent to 0.3% year-on-year, signaling the end of deflation. In the large emerging

economies (BRIC: Brazil, Russia, India and China), inflation held at an average of around 4.2% but the trend was divergent: in China the CPI was again 2.6% while in Brazil it picked up to 6.2% and in Russia up to 6.8%.

With the aim of driving growth and reducing financial tensions, the monetary policy of the central banks continued in expansion mode with official rates kept at a minimum and extraordinary measures implemented principally through asset purchases that led to an increase in liquidity in the system.

In the US, and despite the improvement in activity, the Federal Reserve extended its quantitative easing programme (mortgage-backed securities and public debt) initiated in 2012 and, although in May it announced that it would start gradually tapering, did not make this effective until January 2014. The Bank of Japan was most dynamic in introducing new asset purchases at a rate of between 60 and 70 billion yen annually with the aim of raising inflation to 2%. For its part, the ECB pursued a somewhat different strategy: it implemented two cuts in official

11The economy In 2013.

rates of 25 bp to new historic lows of 0.25% but the size of its balance sheet was reduced in view of the repayment of part of the loans made to financial institutions.

In emerging markets, monetary policy was less homogenous in view of the contrasting profiles of the economies: countries with

higher inflation and current account deficits increased refinancing rates in an effort to prevent capital flight and depreciation of their currencies (the biggest exponent of this policy was Brazil, which raised its rates by 275 bp to 10%), while others like Mexico reduced their rates to 3% to boost activity, or China which kept its annual lending rate at 6%.

Source: Bloomberg and Banca March

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4,0

6,0

8,0

10,0

07 08 09 10 11 12 13 14

BRIC in�ation (CPI YoY) US and Eurozone in�ation (CPI YoY)

In�ation trends

Fragment of Girona Cathedral


These actions of central banks raised expectations of global growth and a reduction in financial tensions. In this environment, bonds with the highest credit quality (US and Germany) lost their attractiveness, leading to a drop in interest rates (fall in prices). The upwards movement of interest rates of sovereign yield curves was at its most intense in the United States. Nevertheless, the most striking fact in the fixed income market was the reduction in peripheral risk premiums and, specifically, in the Spanish economy: the return demanded

from 10 year bonds fell 110 bp to 4.1% and Spain’s sovereign debt index was revised by over 11% during the year.

There was significant activity on variable income markets which ended the year with strong gains, supported in part by improved company profits which grew by around 6% globally. But the biggest boost to the markets came from the high liquidity and attractive valuations of variable compared to fixed incomes. Japanese and US stock markets had the largest gains (57% and 30% respectively), followed by European bourses: the EuroStoxx 600 gained 17% and Ibex

35 21.4%. The exceptions were emerging market indices which for the most part ended the year in the red: the combined MSCI Emerging index fell by 5%.

The market for raw materials was confronted with a drop in demand, especially in China, which counteracted temporary supply bottlenecks. Geopolitical tensions continued apace, mainly in the Middle East: the war in Syria intensified, in Egypt the regime of Mohammed Morsi was deposed by the army and conflict persisted in Libya. On the

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Jan-06 Aug-06 Mar-07 Nov-07 Jun-08 Jan-09 Sep-09 Apr-10 Dec-10 Jul-11 Feb-12 Oct-12 May-13 Dec-13

ECB total assets O�cial rates (ECB) Source: Bloomberg and Banca March

Balance sheet and o�cial rates of the ECB

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Jan-06 Aug-06 Mar-07 Nov-07 Jun-08 Jan-09 Sep-09 Apr-10 Dec-10 Jul-11 Feb-12 Oct-12 May-13 Dec-13

FED total assets O�cial rates (FED) Source: Bloomberg and Banca March

Balance sheet and o�cial rates of the FED.

3 month interest rate trends

United States (3 month Libor)

Dec-12 Dec-13

0.31% 0.25%

Eurozone (3 month Euribor)

Dec-12 Dec-13

0.19% 0.29%

ECB’s balance sheet and official rates FED’s balance sheet and official rates


positive side, an agreement was reached between the leading global powers and Iran, allowing for a nuclear climbdown in exchange for a reduction in international economic sanctions. In this context, the price of Brent crude continued to hover between 100-110 $/barrel.

The year was marked by an end in the rise of the price of gold, since the support factors for this had begun to diminish: risk aversion had reduced, real interest rates had risen and the pace of central bank easing slowed.

As a result, the price of an ounce of gold fell by 28% during the year. The price of base metals also fell on the back of a change in China’s economic policy, now focusing less on investment and a lower accumulation of inventory: copper fell 7%.

The three main trends in the currency market were: weakness of the yen because of the massive stimulus measures focused on printing money (the yen fell 27% against the euro), weakness of emerging currencies in a context of increasing macroeconomic

instability (high inflation and current account deficits) and strengthening of the euro in view of a reduction in risk premiums for assets in the region.

With regard to euro-dollar trading, 2013 ended with an appreciation of the European currency by 4.5% to €1.37/$. Despite the growth differential favouring the dollar, the increase in the FED’s balance sheet put the greenback under pressure. On the other hand, moves towards greater integration of the Eurozone financial system and defense

of its currency made by the ECB were also driving factors for the euro.

In 2013 Spain again registered a strong contraction in activity, with a 1.2% fall in GDP year on year. However, the economy continued to gradually gain ground, allowing it to end the recession with positive quarterly growth rates during the second half of the year.

The inflation trend was sharply downward in the second half of the year - only partly

Port building. Barcelona


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Mar-01 Dec-02 Sep-04 Jun-06 Mar-08 Dec-09 Sep-11 Jun-13

Quarterly GDP Economic con�dence

Quarterly GDP and economic con�dence

Source: Bloomberg and Banca March

explicable as a cancellation of the basic effects of the increase in VAT in September 2012 - with growth in the CPI in December 0.3% year-on-year five-tenths of a percentage point lower than the Eurozone as a whole.

The job market remained one of the main burdens on the economy, with the unemployment rate ending 2013 at 26%, involving a total of 5.9 million unemployed. The rebalancing of the real estate sector, restrictions in access to credit and measures to cut the public deficit also weighed on

internal demand which fell by an average 2.8% in the year, but with a marked reduction in the pace of reduction in private consumption and investment.

For its part, the public expenditure component also reduced its negative contribution, mainly after the decision of the European Council in June to ease by 2 pp the objectives of the budget deficit to 6.5% of GDP, ending the year at 6.6%. The rebalancing of public accounts remained one of the pending matters requiring renewed efforts in 2014.

The most positive note was struck by the strong rebound in external accounts, since it is estimated that for the first time since 1997 the Spanish economy will register a current account surplus that will enable it to reduce external financial requirements. This change was driven by an improvement in economic fundamentals: a surge in exports, which now represent 34% of GDP - a rise of 10 pp since 2009.

This export growth is based to a large extent on competitive gains after years of containing labour costs and improving

productivity. In the period between 2009-2012, the average productivity gain in Spain was 2.4%, the biggest growth in the large economies of the Eurozone.

Another significant advance was in the restructuring of the financial sector, allowing the European rescue programme to be terminated in December after 41.3 billion euros of the 100 billion available had been used up. This rescue programme will now be reduced to a half-yearly supervision by the European authorities until the amounts owed are repaid.


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Jan-05 Oct-05 Apr-13Jul-12Oct-11Jan-11Apr-10Jul-09Oct-08Jan-08Apr-07Jul-06

Credit to non-financial companies (resident)

Loans to non-�nancial companies (resident) Source: Bank of Spain and Banca March

Loan rates to non-financial companies(Maturity less than 1 year and up to €1 m)

Source: BCE and Banca March

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03 04 05 06 07 08 09 10 11 12 13

Germany Spain Italy

In spite of this, the conditions for accessing credit for non-financial companies have still not improved. The high rate of contraction of loans continued, added to which was a continuing high cost of this financing. The fall in the risk premium of sovereign debt has not been passed on to the domestic credit market. (see diagrams).


2014 prospects: confirmation of global recovery

Global economic growth will accelerate in 2014 at a rate close to the historic average, driven by the higher contribution of the developed economies and a reduction of financial risks. The US economy will grow at a rate close to its growth potential while the Eurozone should consolidate the economic recovery started in 2013. Germany will continue as the principal

engine of growth, but will also be bolstered by an improvement in economic activity in peripheral economies, specifically Spain, in a context of a lower fiscal burden and stabilization in credit markets.

In the political sphere, the process to enhance European integration by creating a banking union will be decisive in eliminating fragmentation in the region’s credit market,

in a year where this will share the headlines with elections to the European parliament.

Emerging markets will continue to be the principle engine of global growth but will advance at a slower pace than in the previous decade. In addition, some emerging markets with high current account deficits and high inflation will be affected

by the return of investment flows towards developed markets. This region will also have a political diary filled with a variety of elections that could change the course of economic policies.

Global inflation will continue to be contained, allowing the leading central banks to keep official interest rates at a minimum. However, this year we shall see

Statue of James I of Aragon. Mallorca

172014 ProsPecTs

the beginning of tapering, specifically, of the Federal Reserve liquidity measures.

This benign scenario is not free of risks. The main dangers in 2014 would be a premature withdrawal of monetary stimulus by the Fed and other central banks, a greater cooling of emerging economies, an increase in fiscal adjustments or a return to crisis in the Eurozone. Also, we should not forget the ever-present geopolitical risks.

Domestically, Spain started the economic recovery in the second half of 2013, but this will be gradual in a context where high debt ratios and unemployment will slow the forecast economic recovery. Likewise, the rebalancing of public accounts is another inherited challenge, which will necessitate continuing the reform process to preserve confidence both domestically and internationally.


Royal Palace of Aranjuez. Madrid

19 economIc anD fInancIal rePorT

Economic and Financial Report

Most significant data

Banca March Group

Analysis of the consolidated balance sheet

Client funds

Customer credit

Capital markets

Capital instruments

Consolidated income statement

20

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28

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32

33

34

36


BANCA MARCH GROUP

Most significant data

2013 2012 variation

tUrnovEr

Net equity 3,499.7 3,302.3 197.4

Managed funds 12,771.2 10,899.0 1,877.2

Managed credits 7,323.4 7,702.2 -378.8

Shares 2,067.9 2,321.2 -253.3

Total assets 15,393.2 14,268.0 1,125.1

EarninGS

Interest margin 177.3 167.6 9.7

Gross margin 463.5 -28.2 491.6

Loss impairment 105.6 94.5 11.2

Consolidated result before tax 240.0 -358.3 598.2

Profit attributed to the Group 57.8 -141.8 199.6

SoLvEnCY ratioS anD FinanCiaL SoLiDitY

Core Capital (%) 22.3 27.1

Bad debt (%) 5.2 4.9

Bad debt cover (%) 76.1 79.2

nUMBEr oF EMPLoYEES

Number of employees 1,854 1,477

in millions of euros

21 economIc anD fInancIal rePorT | MosT signiFiCAnT DATA

BANCA MARCH, S.A.

2013 2012 variation

tUrnovEr

Shareholders’ equity 761.6 766.6 -4.9

Customer deposits 9,031.3 8,172.5 858.8

Loans to customers 7,074.2 7,541.3 -467.1

Total assets 11,328.8 11,156.8 172.0

EarninGS

Interest margin 134.9 153.4 -18.4

Gross margin 261.0 262.4 -1.4

Profit or loss for the financial year 1.1 11.8 -10.7

nUMBEr oF EMPLoYEES anD PointS oF SaLE

Number of employees 1,307 1,284

Number of branches 214 229

Number of ATMs 480 495



Since 1926, Banca March, S.A. has been involved in banking, with a particular focus on Wealth Management, Private

Banking and Corporate Banking

Banca March group

The structure of the Banca March Group matches the development of its operations: banking and investment in industrial holdings. As of 31 December 2013, the Group had a high solvency ratio of 22.3%.

Since 1926, Banca March, S.A., the Group parent company, has been involved in banking, specializing in Wealth Management, Private Banking and Corporate Banking with a particular focus on entrepreneurs and family companies with medium/high and high revenues.

The Banca March Group has also developed its insurance business through March Unipsa Correduría de Seguros, S.A. and March Vida, S.A. de Seguros y Reaseguros; management of collective investment societies, through March Gestión de Fondos, S.G.I.I.C., S.A., March Gestión de Pensiones, S.G.F.P., S.A., Artá Capital S.G.E.C.R., S.A. and Inversis Gestión S.G.I.I.C.; and sale of financial products and services for Private Banking customers through Consulnor.

In 2013, the Group exercised a preemptive right of purchase in the sale of Banco Inversis, S.A. by which the Group came to own 100% of its capital. The payment totalled 210.3 million euros. The aim of this acquisition is to ensure and maintain the quality of service provided to customers and to develop institutional business both in Spain and in its international expansion. Banco Inversis, S.A. is a strategic supplier of Banca March services in the stock market sector.

GEOGRAPhiCAl DiStRibutiOn OF thE nEtwORk

Canary Islands

la Palma Tenerife

cádizlanzarote

málaga

madrid barcelona

Girona

Tarragona

london

Valencia

alicanteformentera

majorca

Zaragoza

bilbao

Vitoria

san sebastián

logroño

menorca

Ibiza

Balearic Islands

Gran canaria

fuerteventura

luxembourg

23 economIc anD fInancIal rePorT | BAnCA MARCH gRoUP

At the same time as the purchase, the Group came to an agreement for the sale of the retail private bank business of Banco Inversis, S.A. to Andorra Banc Agricol Reig, S.A. for 179.8 million euros. This will take effect once all the corporate operations required have been carried out and the relevant authorizations have been received and entered into the accounts as “Non-current assets held for sale - shares” in the consolidated balance sheet.

The Group continued to optimize as much as possible its resources and branches, adapting them to the current economic environment and focusing its commercial network on 214 branches at the close of 2013.

Geographical network 2013 2012

Balearic Islands 120 130

Canary Islands 37 41

Catalonia 9 7

Valencia 14 15

Madrid 14 14

Andalusia 14 18

Zaragoza 2 2

Bilbao 2 0

London 1 1

Luxembourg 1 1

Total branches 214 229


MARCh JltCORREDuRÍADE SEGuROS

75.0%

MARChCAnARiAS

100%

iGAlCA100%

MARCh GEStiÓn

DE PEnSiOnES100%

MARCh ViDA100%

360 CORPORAtE

FinAnCE72.0%

MARCh GEStiÓn

DE FOnDOS100%

COnSulnOR47.2%

CORPORACiÓn FinAnCiERA

AlbA33.9%

bAnCO inVERSiS

100%

MARCh PAtRiMOniOS

100%

inMObiliARiA MARhiGAl

75.0%

Global integration

Equity Available for sale

MARCh DEinVERSiOnES

100%

bAnCA MARCh, S.A.*

*As of 31 December 2013

PEPE JEAnS12.1%

ROS ROCA17.4%

FlEX19.7%

ACERinOX23.5%

OCibAR21.7%

MECAluX24.4%

AntEVEniO18.7%

ACS16.3%

PAnASA26.4%

En CAMPuS32.7%

ClÍniCAbAViERA

20.0%

inDRASiStEMAS

11.3%

SiRESACAMPuS

17.4%

EbROFOODS

8.2%


Abando train station. Bilbao

Investment activity in industrial holdings was carried out through Corporación Financiera Alba, S.A which is controlled with a direct 33.9% stake.

Control by Banca March, S.A. is exercised by Juan, Carlos, Gloria and Leonor March Delgado, who together control 100% of the share capital, without any of them, whether on the basis of their shareholdings or any kind of agreement, doing this individually. Banca March, S.A. and its shareholders together control 66.7% of Corporación Financiera Alba, S.A.

The investments of Corporación Financiera Alba, S.A. focus on the management of real estate for operating leasing and in owning stable and long-term holdings in leading companies in their sectors, among which the following can be highlighted: 16.3% in ACS, Actividades de Construcción y Servicios, S.A., 23.5% in Acerinox, S. A., in which it is the principal shareholder and 11.3% in Indra Sistemas, S.A., 8.2% in Ebro Foods, S.A. and 20.0% in Clínica Baviera, S.A. and 18.7% in Antevenio, S.A.

Likewise, through Deyá Capital, a development capital vehicle, the Group offers its customers opportunities to acquire stakes in co-investment projects. As of 31 December 2013, the Group had a variety of holdings for this purpose in substantial unlisted companies: Mecalux, S.A., Pepe Jeans, S.A., Ros Roca Environment, S.L., Ocibar, S.A., Panasa, Flex, S.A., EnCampus residencia de estudiantes, S.A. and Siresa Campus, S.A.

As of 31 December 2013, the total assets on the Group’s consolidated balance sheet came to 15,393.2 million euros, which means an increase of 7.9% compared to the previous year. The managed assets of clients increased by 1,872.2 million euros, rising to 12,771.2 million euros, meaning an increase of 17.2% compared to the previous year while managed credit was 7,323.4 million euros, 4.9% lower than the previous year. As of 31 December 2013, the Group’s assets came to a total of 3,499.7 million euros.


in million euros

Solvency ratio (Consolidated basis)

2013 2012

Computable bank capital 2,037.6 2,579.6

Asset requirements 730.3 760.2

AssetSurplus 1,307.3 1,819.4

Solvency Ratio (%) 22.3 27.1of which: “Core capital” (%) 22.3 27.1

As of 31 December 2013, profit attributed to the Group came to 57.8 million euros. The interest margin rose to 177.3 million euros, 5.8% more than the previous year, while net fees charged rose to 106.5 million euros, 21.3% more than the previous year, largely deriving from managing investment funds and SICAVs and the distribution of insurance and means of payment. It must be emphasized that the results of entities assessed by the equity method have returned to positive territory, rising to 149.4 million euros. During 2013, the Group diverted a significant part of gross margin as cover for loss impairment of financial assets amounting to 105.6 million euros.

From 31 December 2013, for the purpose of calculating the capital ratio, the Banca March Group proportionately included 66.7% of Corporación Financiera Alba. In accordance with the regulations applicable as of 31 December 2013, the Group’s solvency ratio is 22.3% with 100% of core capital. Capital requirements were 730.3 million euros, with the surplus of equity capital rising to 1,307.3 million euros.

Prado Museum. Madrid


2011 2012 20134

6

8

5

7

Bad debt ratioPercentage

4.1

4.95.2

2011 2012 201360

80

100

Cover for non-performing loansPercentage

81.279.2

76.1

The percentage of bad debt (credit risk and off-balance-sheet exposure) at the end of 2013 was 5.2%, considerably less than the sector average. For its part, insolvency cover was 76.1% for these bad debt risks.

Bad debt ratio and insolvency cover 2013 2012

Bad debt ratio (%) 5.2 4.9

Insolvencycover (%) 76.1 79.2


Analysis of the consolidated balance sheet

As of 31 December 2013, assets of the consolidated balance sheet rose to 15,393.2 million euro, 7.9% more than the previous year. Credit to customers came to 7,288.5 million euros, a decrease of 4.9% compared to the previous year. Customer deposits increased by 7.1%, to 8,348.5 million euros.

Net assets at 31 December 2013 rose to 3.499 billion euros.

During 2013 the Group continued consolidating its strategic areas: Wealth Management and Private and Corporate Banking, especially oriented toward family-run companies and business people and the medium-high and high income brackets.

Banknote fragment

Composition of assets

2013 2012

2,265 2,007

7,662

2,616

1,983

7,289

2,620

3,219

0

5,000

10,000

15,000

20,000

Other assetsHoldings and capital instrumentsLoans to customersBase lending rate

Other liabilitiesNet equity Client funds Base lending rate

millions of euros

Composition of liabilitiesmillions of euros

2013 2012

1,591 1,445

8,572

3,302949

8,838

3,500

1,464

0

5,000

10,000

15,000

20,000

Composition of assets

2013 2012

2,265 2,007

7,662

2,616

1,983

7,289

2,620

3,219

0

5,000

10,000

15,000

20,000

Other assetsHoldings and capital instrumentsLoans to customersBase lending rate

Other liabilitiesNet equity Client funds Base lending rate

millions of euros

Composition of liabilitiesmillions of euros

2013 2012

1,591 1,445

8,572

3,302949

8,838

3,500

1,464

0

5,000

10,000

15,000

20,000

29 economIc anD fInancIal rePorT | AnALysis oF THE ConsoLiDATED BALAnCE sHEET

in million euros

Total assets€15,393.2 m

Loans to customers€7,288.5 m

Total net assets€3,499.7 m

variation StatEMEnt oF ConSoLiDatED aSSEtS 31/12/2013 31/12/2012 absolute %

Cash and deposits at central banks 628.4 811.6 -183.2 -22.6

Trading book 330.4 135.6 194.9 143.7

Other VR financial assets with changes to P&L 8.0 3.3 4.7 100.0

Financial assets available for sale 2,148.0 1,113.0 1,034.9 93.0

Debt securities 1,812.4 818.0 994.5 121.6

Other capital instruments 335.5 295.1 40.5 13.7

Credit investments 8,924.6 8,857.4 67.2 0.8

Deposits in credit institutions 1,636.1 1,195.8 440.3 36.8

Loans to customers 7,288.5 7,661.6 -373.1 -4.9

Investment portfolio held to maturity 71.9 46.4 25.5 55.0

Hedging derivatives 173.5 225.2 -51.7 -23.0

Non-working assets held for sale 410.2 188.1 222.1 118.0

Shares 2,067.9 2,321.2 -253.3 -10.9

Reinsurance assets 0.6 0.6 0,0 -1.5

Tangible assets 329.7 310.7 18.9 6.1

Intangible assets 23.3 5.2 18.1 346.2

Tax assets 219.7 212.1 7.5 3.5

Remaining assets 57.1 37.4 19.7 52.5

TOTAL 15,393.2 14,268.0 1,125.1 7.9

Trading book 115.3 141.9 -26.6 -18.7

Financial liabilities at depreciated cost 10,668.7 10,115.5 553.2 5.5

Central bank deposits 639.1 554.4 84.7 15.3

Deposits in credit institutions 951.8 890.3 61.5 6.9

Customer deposits 8,348.5 7,793.7 554.8 7.1

Debts represented by negotiable securities 489.1 778.5 -289.4 -37.2

Other financial liabilities 240.3 98.6 141.7 143.7

Hedging derivatives 20.8 5.0 15.8 314.3

Liabilities for insurance contracts 938.3 562.7 375.6 66.8

Provisions 37.9 45.3 -7.4 -16.3

Tax liabilities 68.8 62.3 6.4 10.3

Remaining liabilities 43.6 33.0 10.7 32.3

Valuation adjustments -45.8 -69.5 23.6 -34.0

Shareholders’ equity 1,679.4 1,618.2 61.2 3.8

Minority interests 1,866.1 1,753.6 112.5 6.4

TOTAL 15,393.2 14,268.0 1,125.1 7.9


Clientfunds

As of 31 December 2013, client funds managed by the Group rose to 12,771.2 million euros, an increase of 1,872.3 million euros compared to the previous year. Increases in absolute terms correspond both to clients’ bank balances, which rose 554 million euros to 8,553.6 million euros, 6.9% compared to the previous year, and to off-balance sheet funds which rose 1,607.6 million euros to 3,728.5 million euros, 75.8% more than the previous year.

During 2013 the Bank registered the “XI Banca March Commercial Paper Programme” for a nominal amount of 1,000 million euros. As of 31 December 2013,

“Debts represented by negotiable securities - mortgage debentures” incorporate the mortgage bond issued in 2013 with a nominal amount of 200 million euros named “Issue of BEI I/2013 mortgage bond by Banca March, S.A.” reaching maturity on

8 March 2021. Likewise, as of 31 December 2013 “Mortgage debentures” contain a mortgage bond issued in 2011 with a nominal amount of 100 million euros called “Issue of BEI I/2011 mortgage bond by Banca March, S.A.” reaching maturity on 26 July 2019.

Management by the Group of off-balance-sheet funds (investment funds and risk capital, investment and risk capital companies, pension funds) was done through Grupo Artá Capital, S.G.E.C.R., March Gestión de Fondos, S.G.I.I.C., March Gestión de Pensiones E.G.F.P. and Inversis Gestión, S.G.I.I.C.

In June 2012, the Group began its operations in the Basque Country financial market with the acquisition of 47.2% of Consulnor, an independent company specializing in financial products and services for Private and Institutional Banking Customers.

Prado Fountain. Madrid

31 economIc anD fInancIal rePorT | CLiEnT FUnDs


Client bank funds €8,553.6 m

Debts in negotiable securities €489.1 m

Off-balance sheet funds€3,728.5 m

variation CLiEnt FUnDS 31/12/2013 31/12/2012 absolute %

CUStoMEr BanKinG FUnDS 8,553.6 7,999.6 554.0 6.9Balance sheet balances 8,345.5 7,729.0 616.5 8.0 Sight deposits 2,393.5 2,298.1 95.4 4.1

Time deposits 5,423.7 5,158.4 265.3 5.1

Temporary asset transfer 323.2 66.6 256.6 385.6

Savings in insurance contracts 205.1 205.9 -0.8 -0.4

valuation adjustments 208.1 270.6 -62.5 -23.1 DEBtS in nEGotiaBLE SECUritiES 489.1 778.5 -289.4 -37.2Balance sheet balances 483.6 766.0 -282.4 -36.9 Promissory notes and trade bills 183.6 666.0 -482.4 -72.4

Mortgage debentures 300.0 100.0 200.0 200.0

valuation adjustments 5.5 12.5 -7.0 -55.9 oFF-BaLanCE SHEEt FUnDS 3,728.5 2,120.9 1.607.6 75.8Investment and risk capital funds 1,034.0 932.2 101.8 10.9

Investment and risk capital companies 2,405.1 903.6 1.501.5 166.2

Pension funds 289.4 285.1 4.3 1.5

totaL ManaGEMEnt CLiEnt FUnDS 12,771.2 10,899.0 1.872.3 17.2

2013 2012

8,554489

3,729

8,000779

2,121

Managed fundsmillions of euros

Bank funds

Debts in negotiable securities

O�-balance sheet funds

0

3,000

6,000

9,000

12,000

15,000


Customer credit

As of 31 December 2013 the credit balance granted to customers by the Group was 7,323.4 million euros.

During 2013 the debit balance with tangible security reduced by 405.5 million euros as a result of a reduction in the Group’s exposure to the development sector. As of 31 December the debit balance with tangible security was 4,285.3 million euros, representing 59.3% of the total.

Meanwhile, in 2013 other term loans remained steady at 2,604.8 million euros.

The percentage of bad debt (credit risk and off-balance-sheet exposure) at the end of 2013 was 5.2%, considerably less than the sector average. For its part, insolvency cover was 76.1% of these bad debt risks.


Credit investment

2013 2012

4,285

5,605

337

4,691

2,578

346

millions of euros

Remaining credit

Other term debts

Debts with tangible security

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

variation CUStoMEr CrEDit 31/12/2013 31/12/2012 absolute %

invEStMEnt Credit by type 7,227.4 7,615.3 -387.9 -5.1 Commercial portfolio 100.3 117.1 -16.8 -14.3

Debts with tangible security 4,285.3 4,690.8 -405.5 -8.6

Other term debts 2,604.8 2,578.3 26.5 1.0

Sight and miscellaneous debts 140.6 130.1 10.5 8.1

Financial leasing 78.9 84.0 -5.1 -6.1

Other financial assets 17.5 15.2 2.4 15.5

Bad assets 388.9 396.9 -8.0 -2.0valuation adjustments 8.9 13.2 -4.3 -32.4Less: loss impairment -301.8 -323.2 21.4 -6.6total managed credit 7,323.4 7,702.2 -378.8 -4.9of which: securitized assets excluded from the balance sheet 34.9 40.7

33 economIc anD fInancIal rePorT | CUsToMER CREDiT AnD CAPiTAL MARkETs

Capital details

Capitalmarkets

As of 31 December 2013 the liquidity availability balance of the Group rose by 37.7%, totaling 2,371.1 million euros. Banca March’s liquidity availability includes interbank balances plus liquid assets in the portfolio, plus the balance available in the European Central Bank, corresponding to the line of credit granted for pledges of particular assets to the Bank of Spain.


variation LiQUiDitY avaiLaBiLitY 31/12/2013 31/12/2012 absolute %

Cash 105.2 97.5 7.7 7.94

Central banks (assets) 523.2 714.1 -190.9 -26.73

Central banks (liabilities) -639.1 -554.4 -84.7 15.28

Liquid assets 796.1 432.5 363.6 84.06

Credit institutions (assets) 1,636.1 1,195.8 440.3 36.82

Credit institutions (liabilities) -951.8 -890.3 -61.5 6.91

totaL nEt LiQUiDitY 1,469.7 995.2 474.5 47.67

Available line of credit Bank of Spain 901.4 727.0 174.3 23.98

totaL LiQUiDitY avaiLaBiLitY 2,371.1 1,722.3 648.8 37.67


Capital instruments

The Group adheres to its strategy of stable and long-term holdings in leading companies in their sectors, well-managed and well positioned internationally. Details of the share portfolio as of 31 December 2013 and 2012 are as follows:


2013 2012 Group’s voting Group’s voting right cost right cost

Consolidated cost: ACS, Actividades de construcción y servicios, S.A. 16.3% 931.5 18.3% 954.3

Acerinox, S.A. 23.5% 618.9 24.2% 670.9

Indra Sistemas, S.A. 11.3% 277.3 11.3% 274.0

Antevenio, S.A. 18.7% 2.0 20.5% 3.9

Prosegur, S.A. 0.0% 0.0 10.0% 181.0

Ebro Foods, S.A. 8.2% 191.2 8.1% 184.9

Clínica Baviera, S.A. 20.0% 37.2 20.0% 36.5

Consulnor, S.A. 47.2% 9.9 47.2% 9.8

Carrefour Correduría de Seguros, S.A. 0.0% 0.0 25.0% 5.9

totaL 2,067.9 2,321.2

Instituto Cervantes. Madrid

35 economIc anD fInancIal rePorT | CAPiTAL insTRUMEnTs

Through Deyá Capital, a developed capital vehicle, the Group contains in its portfolio a variety of investments in leading unlisted companies in which our clients have co-invested: Mecalux, S.A., Pepe Jeans, S.A., Ros Roca Environment, S.L., Ocibar, S.A., Panasa, Flex, S.A., EnCampus residencia de estudiantes, S.A. and Siresa Campus, S.A.

As of 31 December 2013 the total capital instruments portfolio (portfolio available for sale and stakes in affiliated companies) is 2,620.3 million euros.

The classification of capital instruments by type of portfolio as of 31 December 2013 and 2012 is as follows:


variation CaPitaL inStrUMEntS 31/12/2013 31/12/2012 absolute %

Trading book 216.9 0.0 216.9 -Portfolio available for sale 335.5 295.1 40.4 13.7 Mecalux, S.A. 94.0 79.0 15.0

Pepe Jeans, S.A. 38.0 38.0 0.0

Ros Roca Environment, S.L. 33.5 31.0 2.5

Ocibar, S.A. 7.4 7.4 0.0

Grupo Empresarial Flex, S.A. 18.5 18.5 0.0

Grupo Empresarial Panasa, S.L. 32.6 32.6 0.0

EnCampus residencias 4.8 0.0 4.8

Siresa Campus, S.A. 14.9 0.0 14.9

SAREB 4.9 4.0 0.9

Resto de cartera 86.9 84.6 2.3

Holdings in affiliated companies 2,067.9 2,321.2 -253.3 -10.9 totaL CaPitaL inStrUMEntS 2,620.3 2,616.3 4.0 0.1


Consolidatedprofit and loss account

As of 31 December 2013 profit attributed to the Group came to 57.8 million euros. It should be highlighted that net fees charged rose to 106.5 million euros, 21.3% more than the previous year, mostly deriving from management of investment funds and SICAVs and from insurance distribution and means of payment.

Interest margin rose to 177.3 million euros, 5.8% more than the previous year. It must also be emphasized that the earnings of companies assessed by the equity method have returned to positive territory, rising to 149.4 million euros. Hence, the Group’s gross margin rose to 463.5 million euros.

As of 31 December 2013 conversion costs (personnel and other general administration costs) rose to 177.0 million euros, an increase of 6.9% compared to the previous year.

The Group continued allocating a significant part of the margin generated to cover for impairment of financial assets, which in 2013 rose to 105.6 million euros.

In 2013, the Group sold its stakes in Prosegur, Compañía de Seguridad, S.A. (10.0%), totaling 269.1 million euros, registering a profit of 89.1 million euros. It also sold 2.0% of its holdings in ACS, Actividades de Construcción y Servicios, S.A., totaling 146.2 million euros, earning a profit of 33.7 million euros. Both amounts were registered as “Profits (losses) in asset retirement not classified as non-current assets held for sale”.

2013 2012

177167

Interest marginmillions of euros

0

50

100

150

200

2013 2012

107

Fees collectedmillions of euros

0

20

40

60

80

100

88

2013 2012

177167

Interest marginmillions of euros

0

50

100

150

200

2013 2012

107

Fees collectedmillions of euros

0

20

40

60

80

100

88

37 economIc anD fInancIal rePorT | ConsoLiDATED PRoFiT AnD Loss ACCoUnT

variation 31/12/2013 31/12/2012 absolute %

intErESt MarGin 177.3 167.6 9.7 5.8Capital instrument return 2.4 5.9 -3.5 -59.7

Result of entities assessed by the equity method 149.4 -308.7 458.2

Fees collected (net) 106.5 87.8 18.7 21.3

Results of financial operations (net) 22.5 4.4 18.1 407.8

Exchange rate differences (net) 14.8 13.8 1.0 7.0

Other operating income 460.2 437.8 22.4 5.1

Other operating charges 469.7 436.9 32.8 7.5

GroSS MarGin 463.5 -28.2 491.6 -Conversion costs 177.0 165.7 11.4 6.9

Depreciation 19.2 18.1 1.1 6.0

Allocations to provisions 5.6 -3.5 9.1 -

Impairment of financial assets 105.6 94.5 11.2 11.8

rESULt oF oPEratinG aCtivitiES 156.0 -302.9 458.8 -Losses from impairment of remaining assets 1.4 19.1 1.4 -

Profits (losses) from asset retirement not classified

as non-current assets held for sale 118.9 -0.4 119.3 -

Profit (losses) from non-current assets held for sale

not classified as interrupted operations -33.6 -35.9 2.3 -

rESULt BEForE taX 240.0 -358.3 598.2 -

Profit tax 31.6 -23.9 55.6 -

ProFit anD LoSS For tHE YEar FroM ContinUED oPErationS 208.3 -334.3 542.7 -

Results of interrupted operations 0.6 0.0 0.6 -

ConSoLiDatED rESULtS For tHE YEar 209.0 -334.3 543.3 -Profit or loss attributed to minority interests 151.2 -192.5 343.7 -

Profit or loss attributed to the parent company 57.8 -141.8 199.6 -



Banca March’s Sant Miquel Office.Palma de Mallorca

39PrIncIPal areas of bank bUsIness

Principal areas of bank business

Wealth Management

Retail and Private Banking

Corporate Banking

Subsidiaries

March Gestión

March JLT

March Vida

360 CORPORATE

Consulnor

40

42

46

49


Wealth Management

Wealth Management is a specialized area for family companies, families and high net worth professionals requiring personalized management both of their savings and of their medium-term to long-term investments. Our principal objective is helping our clients preserve, grow and pass on their assets to future generations.

The fact that since 1926 we have been working with a single model and the differentiating characteristic of being the only private family bank in Spain are the basis of our competitive advantage: great

experience, high solvency deriving from prudent and excellent management and a mutual relationship of trust with our clients, investing with them as proof of our strong commitment.

2013 was another good year for the Wealth Management. On the one hand, off-balance sheet funds grew by 58% compared to the previous year, mainly in funds and SICAVs. On the other, the number of clients grew by 26% compared to 2012.

As of 31 December, Wealth Management exceeded 5.4 billion euros under management, a rise of 39% compared to the previous year.

With regard to geographical areas, we have continued consolidating our brand in the Balearic and Canary Islands. In Catalonia, one of our big strategic bets, volumes grew by 47% and the number of clients by 42%. Levante, for its part, grew by 45%, with client numbers rising by 21%. Madrid grew by 40%, with the number of clients growing by 28%. Finally, Aragón also did well in the

year, growing by 61% with the client base rising by 46%.

In 2013, we completely restructured our branch in Luxembourg by incorporating more staff and moving to bigger and better offices located at 21-25 Allée Scheffer. One of the principle objectives of the Wealth Management and Private Banking area was expanding the range of value-added services offered from this branch.

Arriaga Theatre. Bilbao

41PrIncIPal areas | WHEALTH MAnAgEMEnT

The entry of Banca March as a shareholder in Consulnor, a company specializing in wealth management in the Basque country and La Rioja, led to an increase of 27% in the volume of assets managed compared to the previous year.

2013 was also a year marked by good results in portfolio management. Prudence, austerity and care for reputational risk have been the keys for emerging strengthened from the crisis.

All of this has transformed Banca March into a benchmark for wealth management and the third largest Spanish entity by volume in managed SICAVs, according to the Inverco ranking.

With regard to the development of co-investment products, projects implemented by EnCampus, a programme created at the end of 2012 to develop a portfolio of university residences in Spain through the acquisition of already existing residences and the development of new ones should be highlighted.

In December 2013, EnCampus invested 67% of its shareholders’ equity, focusing 75% of its investment in Madrid, Barcelona, the Basque Country and Valencia. Some residences were renovated and other are in progress.

The principal operation was the acquisition by EnCampus of 48.6% of the shares of Siresa Campus, the leader in university residences in Spain with over 6,763 places. It operates 25 residences in the main Spanish universities, with a heavy footprint in Catalonia, the Basque Country, Valencia and Madrid.

The first mezzanine debt fund managed by Oquendo Capital (an entity specializing in managing this type of asset) was closed in January 2013. The group of investors consists of Grupo March, our clients at Banca March, the European Investment Fund and leading institutional investors.

This fund is dedicated to the financing of Spanish companies with good credit histories and growth strategies by selective investment in mezzanine loans. In 2013 it made its first investments in Transport Sanitari de Catalunya (a leading company in the provision of health transport services in Catalonia), Servicio Móvil (a leading national company in hospital document management) and Monbus (the third largest operator of road transport passengers in Spain).

Growth in funds and SICAVs58%

Growth under management39%


Retail and Private Banking

Commercial network

The restructuring of the Spanish financial system has not only affected the number of companies, considerably reducing them, but also the number of branches. Spain has preserved its position as the European country with the most banks per person, although the sector’s trend is to align us with the European model based on fewer but bigger branches.

In 2013, Banca March continued consolidating the transformation of its commercial network into a branch model seeking to offer a good quality of service through high levels of specialization.

In addition to transforming branches into wider spaces with a larger number of employees, an attempt was made to go from a transactional model focused on product sales to a relational and advisory model, focusing on the Private and Corporate Banking client and optimizing the company-entrepreneur duo and relationships with family companies.

This model led to the closure of some branches, the transformation of others and the opening of new ones in areas with high growth potential.

It should be emphasized that 2013 saw the opening of two new branches in Catalonia: Reus and San Cugat del Vallés, and 19 closed/relocated/redeployed, going from 217 Retail and Private Banking branches to a total of 201.

Corporate image

In 2013, Banca March obtained 3 new awards, totalling a dozen national and international prizes received in the last 4 years. This recognition confirms our management based on rigorous protection and creation of value for our clients’ assets.

• BestPrivateBankInSpainintheWorldFinance Banking Awards.

• BestAssetandwealthmanagementinSpain in the Global Banking and Finance Review Awards.

• BestEuropeanPrivateBankforSustainable Growth in the IAIR European Awards.

2013 2012 2011 2010

Offices 201 217 231 254

Branches 1 or 2 employees 43 66 68 85

Volume/branch (million, euros) 54,6 46,8 42,3 28,8

Employees/branch 3,7 3,5 3,3 3,2

43PrIncIPal areas | RETAiL AnD PRivATE BAnking

Online media

2013 saw the continuation of the strategic project initiated in 2012, converging on the launch of a new website with renewed image and content and a new online bank platform, expanded operations and the extended roll-out of mobile banking.

Online banking

There was continued improvement of the application launched at the end of 2012 involving the launch of new functionalities. Among others, the development of a complete catalogue of online products, including: accounts, deposits, cards, investment funds, SICAV, securities and pension plans.

This has produced a high rate of migration in operations to online banking. A significant piece of data is that in December 2013, 73% of transfers made by our clients were done through remote banking.

Corporate website

Our website is a means of communication with growing importance. The number of visits received in December 2013 was 194,382, a number that is clearly growing. This channel is updated daily with relevant content, displaying the value proposition provided by Banca March to its clients.

Social networks

The leading role played by social networks in digital communications is undeniable. In view of this phenomenon, in 2013 Banca March launched its official Twitter, LinkedIn and YouTube profiles. This initiative provides our clients and users of these networks with interesting financial and institutional content. Market reports, investment strategies, interviews, interesting events and relevant facts are published in these media.

Online transfers trend

Jar-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

100,000

80,000

60,000

40,000

20,000

0


Events and functions for clients

We continue paying special attention to our functions for our Private Banking and potential clients. These conferences and presentations are hosted by specialists and managers of the March Group, as well as representatives of other leading companies.

In 2013, 52 events were organized in the various geographical zones where Banca March is present and which involved over 2,500 clients. These events can be divided into three categories:

• Investmentforums.

• Presentationofthe2013AnnualStrategicReport.

• EventsrelatingtoFamily-OwnedCompanies.

Euro residents

Thanks to its wide experience, Banca March is the reference bank in the sector for foreign clients, especially in the sector for Euro residents which make up almost 20% of all the company’s clients.

Britons and Germans have the largest presence among foreign citizens at 35.5% and 38.1% respectively.

Development and sale of products

In 2013 we continued working in specialized management customized for each client, highlighting a wide range of products and services specifically designed for clients with a Private Banking and Wealth Management profile, as well as for family companies:

• SICAVs.

• Portfoliomanagement.

• ProfiledFunds.

• UnitLinked.

ATMs

In 2013, the total stock of ATMs was 480, of which over 58% corresponded to non-branch machines. Non-branch ATMs are located in places with large numbers of people passing through to provide greater convenience and service quality to clients and the public in general: shopping malls, large stores, leisure areas, hospitals, hotels, airports, etc.

Total development of ATMs by years and areas

499495103

146

250

102

146

247

Balearic Canary Mainland Spain

600

500

400

300

200

100

0

2013 2012 2011

480100

143

237

45PrIncIPal areas | RETAiL AnD PRivATE BAnking

Cards

During the year, new contactless technology was introduced: this is a payment system allowing purchases just by bringing the card closer to the point of sale terminal of the stores. This new payment system saves consumers time: the transaction is much easier and more flexible than conventional payment.

Contactless technology is supported by NFC (Near Field Communication) and requires contactless cards, contactless readers and a contactless cash machine to operate.

The Banca March point of sale terminals have already been adapted to NFC technology.

It is a leap forward in the value proposition of our cards and everything has been adapted to this next technology.

In addition, in 2013, our strategy focusing on middle-high and high income clients continued, enhancing our Platinum and Gold product pack and consolidating our business strategy intended for the Private Banking, Wealth Management and Corporate Banking segments requiring this type of exclusive product.

The greatest growth was shown in the Gold mode, with 15.9% growth compared to the previous year.

Bank insurance and pensions

Bank insurance and pensions developed positively in 2013. This year saw the business plan for the three years 2011-2013 conclude with significant sales and profits. This data represents 26.5% of growth compared to the previous year.

The earnings distribution by client segment showed the strong results achieved by Private Banking clients, representing 42.1% of all clients at the close of the year.

In 2013, over 36,000 insurance contracts and plans were signed, of which over 2,000 were for new products introduced in 2012.

Sales of products and volumes of savings-pensions also preserved growth in the previous year. Contracts grew by 7.0% compared to 2012, reaching 177,946 policies and plans. With regard to volumes, growth compared to 2012 grew by 9.4% in savings and 16.4% in pensions.

totaL December 2013 the total

Platinum 1,743 1.1

Gold 38,809 25.3

Classic 109,877 71.6

Revolving 3,099 2.0

totaL StoCK 153,528 100.0

% ofnnumber of cards


Plaza de la Constitución. Cádiz

There was a change in the trend of the principal macroeconomic indicators in 2013. After a long period of contraction in GDP, in the third and fourth quarters of the year the expected turnaround occurred, with 0.1% and 0.3% growth respectively.

There was growth in the volume of exports (positive balance of payments) and a strengthening in the tourism industry (the third-largest in the world), as well as an improvement in productivity and, therefore, in competitiveness.

It remains to be seen if there will be subsequent investment, which had its first positive quarterly rate in over two years. In contrast, the problem of employment continued to weigh on the economy all year.

In this context, Corporate Banking improved its results compared to the previous year. All the business units from the various markets in which we operate contributed to this improvement.

This area closed the year with a margin increase of 44%. Hence the 2011-2013 Plan closed with significant margin increases, highlighting the trend in fees, which during this period were over 200%, and the managed business NPL ratio, which was 1.5% less.

In 2013, special mention is due to the trend in fees, which grew by 33.0% compared to the previous year, reaching an average ROA of 1.3%.

Other facts to highlight during the year: participation as a bookrunner in issuing senior Port Aventura debt (420 million euros) and issuing a Madrileña Red de Gas bond (275 million euros); incorporation of commodity cover trading in our trading rooms; reaching the top spot as operator of insurance programmes for the hotel sector through March JLT, which thanks to its international reach and specialization covers all sectors and provision of 20 new and substantial mandates to 360 CORPORATE.

Corporate Banking

47PrIncIPal areas | CORPORATE BANKING

Likewise, we continued equipping our systems with the necessary logistics to allow daily communication of transactions with clients to become more efficient and lighter. In this respect, a new and exclusively corporate remote banking tool was developed, incorporating new functionalities adapted to the specific characteristics of legal entities. Equally to be highlighted are new advances in confirming and factoring, which were introduced throughout the current year.

Our managers have years of experience in Corporate Banking, with general expertise in business administration and specific expertise in the sector of activity and company profile which they are involved in, allowing them to offer customized and comprehensive advice.

In addition, they have a range of specialized services they can offer depending on the specific circumstances and requirements of the client’s situation, such as:

•debtofallkinds;

•mergersandacquisitions;

•privateequity(ArtáCapital);

•marketrisk,interest,currencyandcommodities and

•managementandadviceonriskandinsurance (March JLT).

In Corporate Banking we have a permanent desire to continue growing, prioritizing consolidation of a model based on global advisory and supporting our clients in their long-term requirements and projects, without diminishing our credit quality.

March Capital Markets

In 2013 Banca March created March Capital Markets (MCM) by incorporating professionals with wide experience in structured financial markets.

The fundamental objective of MCM is to seek solutions to the structured financing needs of clients of Banca March, whether in banking or as alternative investors.

On the basis of the above, our team provides the following areas of activity:

• Syndicatedloanfinancing:in2013theMCM team participated in operations with a total financing value greater than 1 billion euros, with the managed participation of Banca March around 100 million.

• Asset&CapitalFinance:in2013BancaMarch participated in structuring the financing of film productions with leading international companies; this financing involved significant investment in Spain.

Likewise, Banca March took the initiative in developing new shipping financing structures on the model of the New Tax Lease initiated by the Spanish government and in accordance with the regulations approved by the European Commission.

• Marketsofpubliccapital:includesfinancing operations of companies with a public rating in regulated markets, both domestically and at a European level.

Marginof+44.1%

Non-performing loan ratio>1.5%

Average ROA1.3%


Novelda Castle. Alicante

• Marketsofprivatecapital:includeslong-term financing operations carried out between middle market companies, i.e. with average turnover between 100 million and 1.5 billion euros and alternative financing vehicles.

Banca March participates as an advisor to its clients in the process of identifying opportunity, elaborating and coordinating all the documentation required for analysis by potential financiers and optimization and execution of the entire process of selecting the optimum alternative financing for the client.

• Co-investmentinstructureddebt:includes any structured financing activity allowing participation both of clients of Banca March and institutional investors in financing operations where Banca March operates as a financing agency.

Banca March has made a decisive bet on this strategy, bringing together visions of origination and distribution, the first concerning relations with companies and the second with investors, with the aim of trying to guide a dynamic and demanding market where quality of service, management and reputation of the company are indispensable conditions for success.

49PrIncIPal areas | SUBSIdIARIES

MArCh GEsTIón

March Gestión de Fondos (MGF), the March Group investment fund manager, closed 2013 with assets of 4.023 billion euros under management, 81% more than the previous year. In 2013, it earned 1.620 billion in net underwriting through its investment funds, SICAVs and pension funds.

In the last five years, MGF has more than trebled its assets under management, as reflected in the diagram, while the sector overall is still 5% below 2008 levels. Within the strong growth in 2013, the integration of Consulnor Gestión, which brought in around 500 million euros in funds and SICAVs, should be highlighted.

The strategy over the last five years has focused on creating differentiated investment funds with added value, applying the bank’s value investment philosophy. In 2009 we launched March Vini Catena, the first variable income fund investing in companies involved in the value chain of wine, which accumulated over 120 million euros in assets and profits of 47.0%. In 2012, we also launched The Family Businesses Fund, investing in listed family companies. This product manages over 50 million euros and shows registered profits of 37.0%.

Management of SICAVs was another of MGF’s key areas, where it is the third largest Spanish company by volume of SICAV assets. In this respect we would like to mention Torrenova de Inversiones SICAV and its Luxembourg counterpart, March International Torrenova Lux, which in 2013 exceeded 1.2 billion euros in assets under management and which have been transformed into a reference portfolio for many clients from Spain and other European countries. In addition to this

risk-averse profile strategy, March Gestión administers Bellver, a SICAV for investors with a moderate profile, and Lluc Valores for investors with a dynamic profile.

The search for profitability with the least risk possible was, for yet another year, the principal focus of MGF with 70% of its funds beating the reference indices. The process of integration with Consulnor, which was successfully concluded, the incorporation of new talent into the team and continued growth on an international scale marked the year.

Finally, MGF successfully promoted the creation of GBAM (Group of Boutique Asset Managers), an international association of investment boutiques for promoting the exchange of expertise among its members. Even before completing its first year of existence (April 2013), it already had 16 members from 13 countries in Europe, Asia, Africa and Latin America, with total assets managed of more than 90 billion euros.

subsidiaries

Source: Inverco and MGF. Data as of December 2013. In million euros. Sector includes funds and SICAVs.

2013 2012 2011 2010 2009 2008

MGF AuM 4,023 2,223 1,723 1,628 1,504 1,137

AuM Sector 181,168 147,344 151,720 164,179 188,538 192,301

Assets under management

Source: Inverco and MGF. 2008 =100. Data as of December 2013

MGF AuM AuM Sector

60

80100

120140

160180

200220240

260280300

320340

360

2008 2009 2010 2011 2012 2013


MArCh JLT

In 2013 the Spanish insurance sector suffered one of the largest contractions in its history, with a reduction in managed premiums of -3.3% (-1,876 million euros) This contraction was caused by the difficult situation of Spanish companies in general and an excess in competition between insurers.

Against this complicated backdrop, the bet of March JLT on specialization and focusing on medium and large companies with an international reach enabled growth above the sector average with a net increase of 6.2% and profits of 15.3%. These figures complete a 29.0% increase in net income and a 44.0% increase in profits in the three years 2011-2013, in line with the objective marked in the strategic plan for this period.

2013 was a year of consolidation of the strategic alliance with the JLT Group. This fact led to more commercial activity in the international context, positioning us as an alternative to the large multinational brokers for Spanish companies with a global presence. On the other hand, we went more in-depth into niche specialization sectors, where an increase of more than 40.0% must be mentioned in the social welfare business or our first operations in the aviation sector, a high value-added business where we did not operate before.

In line with this strategy, a significant operation was concluded with a Catalan textile group present in 18 countries across

3 continents in 2013. Likewise, clients were gained in the aviation sector and insurance is being managed in the Spanish branch of two large international groups in the telecommunications and distribution sectors.

On the other hand, during this period, we set up a new branch dedicated to reinsurance underwriting, to which we transferred all the business of this kind which until then had been run by JLT Group in Spain. This new reinsurance subsidiary, together with the actuarial consulting and traditional brokerage, allowed us to complete the service offer demanded from us by our clients.

With regard to geographical expansion, in 2013 we opened branches in Bilbao and Seville, which together with that of Valencia –opened in 2012– and those of Barcelona and Madrid, places us among the 5 principal manufacturing business hubs in the country. This territorial footprint, together with our consolidated position in the Balearic Islands and the Canaries, allows us to provide a quality service to the brokerage client.

Overall, successfully negotiating this difficult year of 2012 places us in an unbeatable position to pursue our strategy of transforming ourselves into an added value benchmark for medium and large-size Spanish companies with an international reach in line with the strategy of Banca March.


Forners Tower. Menorca

MArCh VIDA

At the close of 2013 the March Vida portfolio had 75,000 policies, with managed technical reserves rising to over 900 million euros. The expansion of the range of unit-linked products as well as good sales of life annuities allowed us to reach a premium volume of 400 million euros.

The principal products as regards premium volumes were unit-linked, life annuities (March Vida Pensión Plus) and savings products for retirement, March Vida PPA and March Vida PIAS.

With regard to life-risk products, we shall continue actively selling both products linked to financial operations as well as

“free” products, including March Vida Protección Exclusive, intended for Private Banking clients.

The results of 2012 were very satisfactory, with a growth of 70.0% on the previous year.

For 2014 we plan to continue expanding our product range of Unit-Linked products with retirement plans for executives. Likewise, the company will continue preparation work on the new European Solvency II regulations. The obligation to provide notification about expected future pensions of both Social Security as well as private savings systems would mean a substantial savings drive for retirements.


360 COrpOrATE

360 CORPORATE is the subsidiary of Banca March specializing in financial advice. The specialized services provided are fully complementary, have synergies with the rest of the activities developed by Banca March and include the following:

• Mergersandacquisitions:includingadviceto companies in purchases, sales, mergers, spin-offs, LBOs, MBOs, takeover bids, etc., both domestically and internationally.

• Debt:includingrestructuringorrefinancing and search for long and short-term financing in both banking and non-banking.

• Capitalmarkets:coversadviceintheflotation process, presentations to investors and analysis of the capital structure.

• Otherservices:includingthoseclassified as assessment of businesses or companies, development of business plans, definition of incentive plans for executives, and analysis of strategic options for businesses.

360 CORPORATE is one of the reference financial advisory firms in the Spanish market, having concluded around 45 transactions with family companies, listed companies and private equity funds.

In 2013 the negative effects of the financial crisis continued to have a substantial impact on the volume of mergers and acquisitions operations in Spain. Nevertheless, we observed greater dynamism in projects seeking to finance growth companies or projects, as proved by mandates successfully concluded in 2013 by 360 CORPORATE to obtain long-term financing for a renewable energy project of Gamesa Corporación Tecnológica amounting to 30 million euros, or the renewal and expansion of lines of financing of working assets for the Famosa toy company, amounting to 90 million euros.


Detail on building. Ibiza

COnsuLnOr

The entry of Banca March as a shareholder of Consulnor, an independent company founded in 1972 and specializing in financial services to private banking clients, produced one of the leading companies in the Private Banking market with one of the strongest management teams for high net worth customers, market strategy and generation of innovative products.

Consulnor is mainly located in the Basque Country with additional branches in La Rioja, Madrid and Catalonia.

As a result of this agreement, clients of Consulnor Banca March have access to a wide range of services, supported by the solvency of the bank.

This operation transformed Banca March into one of the leading Spanish companies in Private Banking and with the largest number of SICAVs under management. Likewise, the agreement meant a significant increase in balances from other controlled funds, as well as an expansion of the client base in an area,

the Basque Country, where there is a strong network of family companies and a high level of wealth generation.

The most relevant aspects of 2012 were:

- The integration of Consulnor in Banca March, earning around 500 million euros in funds and SICAVs.

- Growth in volume and number of notable clients. The volume of business grew by 25.0%, including the business generated by our clients in the bank. The figure as of 31 December 2013 was 1,130 million euros. On the other hand, the number of notable clients grew by 28.0%

- Average profit in client portfolios grew by 10.0%.


Modernist streetlights. Barcelona

55shares In corPoracIón fInancIera alba

shares inCorporaciónFinanciera Alba

Share portfolio

Affiliated listed Companies

ACS

Acerinox

Indra

Ebro

Clínica Baviera

Antevenio

Unlisted

Mecalux

Pepe Jeans

Panasa

Ros Roca

Flex

Ocibar

EnCampus

56

57

61


shareportfolio

Structure of the main affiliated companies in the Alba portfolio as of 31 December 2013(1):

(1) Other affiliated companies: Artá Capital S.G.E.C.R., S.A.U. (85.01%) and Corporación Empresarial de Extremadura, S.A. (0.94%).

(2) Holdings through Alba Participaciones, S.A.U. and Balboa Participaciones, S.A.U., both with a 100% stake in Corporación Financiera Alba, S.A.

(3) Includes holdings through derivatives.

CORPORACiÓn FinAnCiERA AlbA(2)

PEPE JEAnS12.1%

ROS ROCA17.4%

FlEX19.7%

OCibAR21.7%

EnCAMPuS32.7%

SiRESACAMPuS

17.4%

ACS16.3%

ibERDROlA(3)

5.5%hOChtiEF

53.3%

ACERinOX23.5%

inDRA11.3%

EbRO FOODS8.2%

ClÍniCAbAViERA

20.0%

AntEVEniO18.7%

DEYÁCAPitAl S.C.R.

100.0%

PAnASA26.4%

MECAluX24.4%

bAnCA MARCh, S.A.

Global integration

Equity Available for sale

57shares In corPoracIón fInancIera alba | sHARE PoRTFoLio AnD AFFiLiATED CoMPAniEs

Affiliated companies

LIsTED

ACSACS is one of the largest groups in the world in construction (mainly civil engineering), turnkey projects and infrastructure concessions, with a heavy presence in Europe, North America, Australia, Asia and the Middle East. It also has a strong presence in urban services and waste treatment, mainly in Spain but with increasing operations in other European countries.

In 2013 the group achieved sales of 38,373 million euros, 0.1% less than in the previous year, and recurrent net profit of 580 million euros, 0.3% less than in 2012. In terms of net profit and loss, ACS had profits of 702 million euros compared to losses of 1,928 million euros the previous year as a result of giving a market value to the stake in Iberdrola.

As of 31 December 2013, the listing of ACS rose to 25.02 euros per share, with a market capitalization of 7,873 million euros.

Alba was the primary shareholder of ACS at the end of 2013 with a 16.30% stake. At the beginning of 2014 Alba sold 1.3% of ACS, reducing its stake to 14.99%.

Puerta de Alcalá. Madrid

www.grupoacs.com


Acerinox is one of the leading global companies in the manufacture of stainless steel, with production plants in Spain, United States, South Africa and Malaysia.

Acerinox achieved sales of 3,966 million euros during the year, a fall of 12.9% compared to 2012, and a net profit of 22 million euros compared to losses of 18 million euros the previous year.

Indra is a leading information technology and securities and defense systems company in Spain and one of the main ones in Europe and Latin America. It offers high value-added solutions and services to security and defense, transport and traffic, energy and industrial, financial services, health and public administrations, telecoms and media companies.

Sales reached 2,914 million euros in 2013, 0.9% less than the previous year. Likewise, net profit contracted 12.7% to 116 million euros.

The market capitalization of Acerinox was 2,378 million euros at the end of the year, with a price per share of 9.25 euros.

As of 31 December 2013, Alba held a 23.50% stake in Acerinox and was the major shareholder.

The listing of Indra’s shares rose to 12.16 euros per share at 31 December 2013, for a market capitalization of 1,995 million euros.

At the end of 2013, Alba had an 11.32% stake in Indra’s share capital, and was its second largest shareholder.

www.acerinox.com

www.indracompany.com

ACERINOX

INDRA

59

www.indracompany.com

shares In corPoracIón fInancIera alba | AFFiLiATED CoMPAniEs

Ebro Foods is the leading company in the food sector in Spain by turnover, profits, market capitalization and international reach. It is the world leader in the rice sector and the second-largest pasta producer in the world.

Sales reduced by 1.2% in 2013 to 1,957 million euros while net profits fell by 16.3% compared to the previous year to 133 million euros.

At 31 December 2013 the listing of Ebro Foods shares and its market

Clínica Baviera is the leading company in the provision of ophthalmological services in Spain with a growing presence in other European countries such as Germany, Austria and Italy. In May 2013, the company sold off all its beauty business.

In 2013, in like-for-like terms, consolidated sales grew by 2.7% to 80 million euros and net profits were 5 million euros compared to losses of 1 million euros the previous year as a result, fundamentally, of the negative results of Clínica Londres.

capitalization rose to 17.04 euros and 2,621 million euros, respectively.

At the end of 2013, the holdings of Alba in the share capital of Ebro was 8.21%. In the first quarter of 2014, Alba increased it stake in this company to 10.01%.

The listing of the shares of Clínica Baviera was 10.46 euros per share at the end of the year, with market capitalization of 171 million euros.

At 31 December 2013 Alba had a 20.00% stake in Clínica Baviera, and was one of its principal shareholders.

www.clinicabaviera.com

www.ebrofoods.es

University of Salamanca

EBRO FOODS

CLÍNICA BAVIERA


Antevenio operates in the online marketing sector in Spain with a presence in other European countries, principally in Italy and France, and in Latin America.

In 2013, sales fell by 17.6% to 21 million euros, while net results went from a positive balance of 0.3 million euros in 2012 to losses of 5 million euros in 2013, caused mainly by a deterioration in goodwill.

At 31 December 2013 Antevenio was listed on Alternext at 3.45 euros per

share, with a market capitalization of 15 million euros on this date.

Alba was the second largest shareholder in Antevenio at the end of 2013, with an 18.71% stake in its share capital.

www.antevenio.com

Palma de Mallorca Cathedral

ANTEVENIO

61

Pepe Jeans is involved in the design and distribution of clothes and other fashion items, with Pepe Jeans London and Hackett the Group’s flagship brands. Additionally, and including other agreements, Pepe Jeans has an exclusive distribution license and master franchise with Tommy Hilfiger on the Iberian Peninsula.

Directly and indirectly through Deyá Capital, Alba held a 24.38% stake in Mecalux as of 31 December 2013.

At the end of 2013, Alba, through Deyá Capital, held a 12.13% stake in Pepe Jeans.

www.mecalux.es

nOn-LIsTED

Mecalux is one of the leading companies in the world in the warehousing systems market. Its operations consist in the design, manufacture, sale and service provision related to metal shelves, automatic warehousing and other warehousing solutions, with state of the art technology in the sector.

www.pepejeans.com

shares In corPoracIón fInancIera alba | AFFiLiATED CoMPAniEs

MECALUX

PEPE JEANS


Cuba. Flex also has a network of its own stores and franchises for direct sales of its products.

At 31 December 2013 Alba’s stake in Flex, through Deyá Capital, was 19.75%.

www.flex.es

Flex is one of the main leisure equipment companies in Europe with a strong presence in Latin America.

Founded in 1912, it manufactures and sells mattresses, pillows and adjustable beds and other accessories. Thanks to a strong portfolio of brands it is the leader in leisure equipment in Spain, Portugal and the high-end segment in the United Kingdom, and occupies an excellent position in Chile, Brazil and

FLEX

Panaderías Navarras (Panasa) is one of the main producers in Spain of bread, pastries and cakes, both fresh and frozen.

Through Berlys, its main brand, it offers its products to thousands of clients including bakers, hotels, restaurants, major retail outlets and other food shops, thanks to its extensive distribution network spread across the entire Iberian Peninsula, as well as a network of its own stores located

Ros Roca is the leading company in Spain in the manufacture of equipment for collecting waste residues with a presence in the development of treatment plants and methanogenesis of residues. Its registered office and central production centre are in Tárrega (Lleida) and it has subsidiaries and production centres in the United

in Navarre and the Basque Country where it distributes its fresh and frozen products.

At 31 December 2013 Alba’s stake in Panasa, through Deyá Capital, was 26.36%.

Kingdom, France and Germany, among other countries.

At the end of 2013, Alba, through Deyá Capital, held a 17.36% stake in Ros Roca.

www.berlys.es

www.rosrocaenvironment.com

PANASA

ROS ROCA

63shares In corPoracIón fInancIera alba | AFFiLiATED CoMPAniEs

EnCampus is involved in the purchase, development and management of university and college residences with the objective of creating the biggest portfolio of university student residences in Spain.

At 31 December 2013, Alba’s stake in EnCampus, through Deyá Capital, was 32.75%.

OCIBAR focuses on the promotion and operation of marinas on a contractual basis, with currently four contracts in operation on the Balearic Islands, with the largest that of Port Adriano (Calvià, Mallorca).

Directly and indirectly through Deyá Capital, Alba held a 21.66% stake in OCIBAR as of 31 December 2013.

www.ocibar.com

OCIBAR

ENCAMPUS

Butrón Castle. Biscay


Edition:

Banca Marchcommunication and Institutional relations management

avda. alexandre rosselló 8,

07002 Palma de mallorca.

Tel. 971 779 221

e-mail: [email protected]

Design and page makeup:

Illa de Publicitat i marqueting, s.l.

www.illapublicitat.com

Photographs:

banca march archive

Image database

Printing:

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